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I am Charles King(27). At Finance Classic I want to share my financial knowledge with the world. Here you can also find some good financial videos which are very interesting and very informative. If you would like to share your thoughts and knowledge with me and my visitors then please comment here or contact me at: charls413 [at] gmail [dot] com

If you take a look at the current UK sub prime mortgage market it is apparent that it has been affected by the turmoil in the USA sub prime market. Adverse mortgage lenders in the UK have tightened their lending levels with very few lending above 85% Loan to Value of the property. Underwriters are protecting their companies through more stringent underwriting criteria and closer inspection of adverse cases.

This is not a great situation for people who have problems with credit and require a mortgage that is over 85% LTV of their property. Especially after the current trend of consolidation of loans and other finances into mortgages. This will not be able to take place if you have problems with Credit and a mortgage over 85% the value of your property.

Obviously every case is individual but as a general rule make sure that any finances that you have or are thinking of taking out is within your affordability especially in the current environment, the last thing you want to do at the moment is get yourself in to credit problems when this part of the mortgage market is tightening its belt.

If you have bad credit then the best thing to do is to work out you affordibility. The first step is to figure out what your income is and a precise list of your outgoings ,you can talk to an IFA who will give you professional advice and will be able to do an affordibilty calculation for you. It may be the case that you are paying to much for a certain product which will help your outgoings.